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Varo Vs. Chime: Which Is the Best for You?
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Varo Vs. Chime: Which Is More Suitable for You?
Varo and Chime both have high interest on savings accounts. However, their services and products come with certain distinctions.
By Chanelle Bessette, Lead Writer/Spokesperson Banking, checking Accounts, Cash Manager Accounts Chanelle Bessette is a private finance writer for NerdWallet covering banking. She previously worked at Fortune, Forbes and the Reno Gazette-Journal. She also serves as a spokesperson for the banking team. Her expertise has been published throughout The New York Times, Vox and Apartment Therapy.
Updated May 6 2022
Edited by Sara Clarke Assistant Assigning Editor | Banking Sara Clarke is a Banking editor at NerdWallet. She has been an editor and project manager in newsrooms for two decades, most recently at U.S. News & World Report. She was responsible for projects such as the U.S. News education rankings as well as The Best States rankings. Sara has been featured as a guest on SiriusXM Business Radio and iHeartMedia's WHO Newsradio and has been mentioned in The Salt Lake Tribune, The St. Paul (Minnesota) Pioneer Press and other outlets. She is based close to Washington, D.C.
A majority of the products we feature are provided by our partners who compensate us. This influences which products we feature and where and how the product is featured on a page. But, it doesn't influence our evaluations. Our views are our own. Here's a list of and .
Varo and Chime have comparable offerings with a few key differences. Varo is a bank while Chime is a neobankwhich is an online-only financial service business that collaborates with a bank to provide account insurance.
The two firms compare to each other.
Snapshot Comparison
Checking the account
No monthly maintenance fees or minimum balance requirement in one of the two brands, Varo Chime or Varo. Chime.
Varo Chime and Varo Chime both have early direct deposits (up two days earlier).
Deposits of cash at Varo and Chime could be pricey, although money deposits made in Walgreens are free with Chime.
Savings account
With Varo, customers can earn as much as 5.00% annually on their balances up to $5,000 if certain conditions are fulfilled. Alternatively, customers can earn 3.00 percent APY, without having to meet these conditions, and for balances that exceed $5,000.
Chime offers a 2.00% APY for their High Yield Savings account.
Overdrafts, ATMs and customer service
Chime's SpotMe(r) overdraft service lets customers to extend their credit up to $200 with no charge if they meet account requirements.
Varo doesn't permit overdrafts however, it does have an advance cash program.
Varo customers have access to more than 55,000 fee-free Allpoint ATMs.
Chime customers can access more than 60,000 cost-free MoneyPass, Allpoint and Visa Plus Alliance ATMs.
Varo and Chime are both online only and don't have branches.
Varo Chime and Varo Chime both have high mobile app ratings.
Choose Varo if:
You're looking for a high interest rate on savings and can meet the requirements to reach that goal.
Select Chime if:
You're looking for a good savings rate and a flexible overdraft service.
Checking
The ratings of NerdWallet are formulated by our editorial team. The scoring formulas consider many data points for each financial service and product.
at Varo Bank, Member FDIC
Varo Bank Account. The Varo Bank Account has no fees for monthly or minimum requirement for balance. In addition, customers can access The Allpoint ATM network, that has more than 55,000 ATMs for free where customers can take cash withdrawals. But depositing cash is more complicated; Varo customers need to go to an Green Dot retailer such as Walgreens or Safeway and could be charged a charge of up to $5.95. Customers are also able to receive their paychecks as much as two days in advance through direct deposit.
NerdWallet's ratings are determined through our team of editors. The scoring formulas take into account several data points associated with every financial product or service.
Chime spending account. Chime does not have monthly charges or require a minimum balance on its Spending Account. Chime also has savings programs where customers can round up your purchases up to the closest dollar, and then save the difference. In addition, Chime customers can make fee-free withdrawals from more than 60,000 ATMs across the country. Chime belongs to the Green Dot network, so customers can make cash deposits at certain retailers for a fee or at Walgreens at no cost.
Find out more details from Chime
Chime states: "The retailer that receives your cash is accountable for the transfer of funds to your Chime Checking Account. Cash deposit fees may apply if using a retailer other in addition to Walgreens."
"Round Ups automatically round up debit card transactions according to dollar amounts and transfer the round up out of your Chime Savings Account into your checking account."
"Early accessibility to funds from direct deposits depends on the time of delivery of the payment document by the payee. The funds are generally made available on the day the payment file is received which may be up to 2 days before the date for the scheduled payment."
"Out-of-network ATM withdrawal fees may be applicable, but not at MoneyPass ATMs located in 7-Eleven, or any Allpoint or Visa Plus Alliance ATM."
Savings
Varo Savings Account. Customers start at a baseline of 3.00% APY, but they are able to earn 5.00% on up to $5,000 if they have $1,000 or more in direct deposits each month and maintain an active checking (Varo Bank Account) and savings balance at the end of the month. Varo offers two automatic savings programs: the first lets customers withdraw an amount of direct deposits made to their checking account, and transfer funds into their savings. Another program lets customers to save money when they make purchases. Varo will round up your purchase by the closest dollar, and put the difference into the savings account.
Chime High Yield Savings. Chime's savings account is free and offers an 2.00% APY , as provided you maintain a balance of at minimum $0.01. Chime also offers two automatic saving programs. One is a roundup programme that allows purchases using an account debit card for checking accounts and a program that saves 10% from direct transfers of $500 or more from your checking account into your savings account. Note that a Chime Checking Account is required to be eligible for savings Account.
Get more information from Chime
Chime states: " The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and could change at any time. The APY disclosed is in effect as of October 25 2022. There is no minimum balance requirement. You must be able to keep $0.01 of savings in order to get interest. "
"There's no cost for the Chime Savings Account. Cash withdrawal and Third-party fees may be applicable for Chime checking Accounts. You need an existing Chime Checking Account to create an account with Chime Savings. Chime Savings Account."
Experience with banking
Varo and Chime are both online only, which means there's no option if you prefer in-person assistance. The good news is that Varo offers extended weekend and weekday hours of phone support and ways to contact customer service via email and Twitter, and Chime can be reached via chat, email , and telephone 24/7, as well as on Twitter.
Varo and Chime also have very high mobile app ratings in the Google Play and App Store marketplaces.
Overdrafts
Varo. Varo doesn't let overdrafts happen: If a customer tries to conduct a transaction that will result in an imbalance in their account, Varo declines the transaction. If you need some extra time between paydays then you can take advantage of this Varo Advance program, which lets you get cash advances of up to $100 with a fee of up to $5.
Chime. Chime doesn't charge overdraft fees. Instead, it has an overdraft program called SpotMe(r) that allows customers can make overdrafts up to $200 as long as they deposit at minimum $200 in direct deposits every month.
Find out more details from Chime
Chime says: "Chime is a financial technology company, not a bank. Banking services are offered through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC."
"Chime SpotMe is an optional service that requires a single deposit of $200 or more in qualifying direct deposits into the Chime Checking Account each month. Members who qualify are allowed to draw on their account up to $20 on debit card purchases as well as cash withdrawals at first however, they may later be allowed to withdraw more of up to $200 or more based upon the members' Chime Account history, direct deposit frequency and spending habits and other risk-related factors. The limit you have set will be shown to you in the Chime mobile app. You will receive notice of any changes in your limits. Your limit may change at any time, at Chime's discretion. While there aren't any overdraft charges, there could be third-party or out-of-network fees associated in ATM transactions. SpotMe won't cover non-debit card transactions, such as ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions."
About the writer: Chanelle Bessette is a personal finance writer at NerdWallet covering banking. She is a specialist in checking and cash management accounts.
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